Digital Value Chain
Strategy – Participant
Input Summary
Support and input is currently sought for the development of a national digital strategy for the Australian red
meat and livestock industry. The strategy aims to enable the capture, integration, interpretation and
implementation of data generated within the livestock industry through a range of increasingly popular and
new technologies currently used by industry.
MLA is leading the development of the strategy with consultation from industry to enable seamless capture,
integration and interpretation of the vast and increasing range of data that is generated through new
technology. Feedback was volunteered by over 79 key stakeholders who attended the Meat & Livestock
Australia-hosted Australian Red Meat Industry’s Digital Forum, held at the start of October. Stakeholders
were asked for feedback in three key areas:
1. Where do you see the greatest opportunities for the red meat industry resulting from a digital value
chain strategy?
2. What do you see as the key priority areas for this strategy?
3. If this strategy was to deliver one outcome for industry in the next 12 months what would it be?
General comments and information from feedback cards were also collated. Along with this data, further
information was collected from canvases produced at the facilitated workshop held the day after the forum.
The facilitated session identified the key challenges and opportunities industry faces to achieve an effective
strategy.
There were 79 ‘Digital Value Chain Strategy feedback forms’ and 9 ‘feedback cards’ completed, and the
industry input uncovered a wide range of concerns and key areas of focus. In the first topic, providing
greater information and feedback to all sectors of the supply chain emerged as a key trend, with
approximately 60% of respondents mentioning it as an issue. In the second key area, priorities centred on
data; its collection, implementation, who owned it and how it is shared and protected, with the issue
mentioned by 37% of respondents. Finally, in the second and third key area, internet connectivity remains a
crucial focus, with about 23% of respondents mentioning it as an issue.
Background
The red meat industry is generating large amounts of data which could provide valuable insights into meat
production, farm strategy and livestock management. This data is being used by some individuals, however
many are unsure how to interpret data and turn it into a user-friendly format. Industry would like to support
growers by collating big data to develop national trends and information through the development and
implementation of a Digital Value Chain Strategy.
Methodology
Surveys were gathered from industry participants attending the Australian Red Meat Industry’s Digital
Forum and Workshop, on October 6-7, 2016, in Brisbane. Attendees were asked to fill in feedback forms
focusing on the three key areas outlined in the Executive Summary or the quadrant feedback cards, both
developed by Meat & Livestock Australia, at the conclusion of the Digital Forum. Facilitated discussion was
also undertaken at the workshop held the day after the Digital Forum. Responses were collated and
compiled into one-page summaries per key focus area, with a formal report set to be completed at a later
date.
The following feedback was collected….
1. Where do you see the greatest opportunities for the red meat industry resulting
from a Digital Value Chain Strategy?
The surveys indicate that the development of a digital strategy for the Australian red meat and livestock
industry is well supported by stakeholders, with 99% of participants positively supporting the initiative and
listing a wide range of opportunities that could arise from the strategy. One said: “The opportunities are
endless.” Only one respondent said opportunities would be “difficult”, stating: “The business case is very
difficult, even more so for commercial players.”
Providing greater information and feedback through the supply chain is a common theme for about 60% of
respondents, with increased transparency across the supply chain predicted to create “immense” efficiency
gains and a reduction of costs.
Respondents said feedback through the supply chain would result in better traceability which would in turn,
create more informed decision making. It would also help to ensure that red meat products consistently met
expectations through expected incremental improvements from value chain feedback.
Digitalisation is also important, with about 41% of surveys mentioning digital technology and data collection.
Some stated that it would make data keeping and collection of data easier and faster to recall. The ability to
access “near real-time” data would also help improve management, as decisions could be made with
accurate, properly utilised data.
Digitalisation would help to enhance productivity, profitability and efficiency, as well as improve consumer
knowledge and match products to consumer requirements. It would also help improve efficiency at all levels
in the supply chain.
Improvements in the quality and yield of red meat are also flagged, with digitalisation meaning all inputs
from genetics, nutrition and the environment could be measured and monitored to ensure a more
consistent product was delivered to the consumer. This may provide opportunities to improve the yield and
quality of red meat, while maintaining the “highest integrity in the world” in terms of industry standards and
connecting with consumer demands.
Integration of agricultural production data, along with publicly available environmental data is also expected
to achieve better sustainability and animal welfare outcomes.
Producers expected benefits from an integrated approach, as “timely, valuable” information could flow back
quickly along the supply chain to allow them to make “meaningful” changes more quickly, and gain an
understanding of how well their animals were received on the plate.
It was also thought that integration could create further opportunities to deliver premium products to
customers, and assist with value-adding and decommodifying red meat products.
2. What do you see as the key priority areas for this strategy?
Key priorities from respondents centre on data collection, implementation, how information is protected,
who would own the data and how it would be shared, with about 37% of respondents mentioning this issue.
Data collection platforms need smart, issues-focused analysis and interfaces that were simple to use.
Consensus on having a “clear road map” is identified by about 18% of those surveyed. While some call for
the project to get underway, others are more cautious, saying it is important to ensure time and resources
are spent getting the basics right before the project begins. Ensuring collaboration and accountability across
a broad range of stakeholders is an important consideration, with most suggesting the project should be
both industry-led and government-enabled.
One respondent suggests modelling existing data to create “some quick wins” and demonstrate the
usefulness of data, and the type of data collection system that could be used.
Internet connectivity is also highlighted with approximately 23% saying it is a key issue. One respondent
states: “Unless we get universal, acceptable speed of internet coverage in the remote areas we are in, an
integrated digital value chain cannot exist.”
Efficiency and consistency in processing information is also important, with respondents stating that the
platform should take into account the needs of producers as end users.
Communication and collaboration between different sectors remains a vital focus.
Increasing functionality for people at the ground level is also important: “Time is precious so people want
the most bang for their buck.”
Providing standards and processes for all in the value chain, and sharing information with all stakeholders, is
a priority. Ensuring standards are finalised and published so commercial companies can deliver for industry is
also deemed important.
Consumer wants and trends are a fundamental concern, with the consumer and their willingness to pay a
key focus. Examining technologies that enable the red meat market to supply more product to sell, and meet
consumer expectations in a premium market, are also important.
Using digital systems already in place such as electronic tags, virtual fencing, 3D printers, drones and
autonomous devices is important, and could help those involved to access and process data already
available to see how it would fit industry needs and requirements.
3. If this strategy was to deliver one outcome for industry in the next 12 months what
would it be?
Similar themes appear across each of the three focus areas, of which connectivity continues to be a priority,
being mentioned by about 23% of respondents in the second and third key focus area. Some urge that the
government be asked to prioritise mobile and internet coverage to isolated regions and enable connectivity
for all of the red meat industry, from producers to processors.
Other themes from previous key areas also appear, as well as some new topics including an agreement on
data standards and metatags across all agricultural industries, and developing a framework for the
“seamless” transfer of information across the value chain.
Developing a standard platform for how data is stored and accessed is also as a desirable outcome,
mentioned by about 35% of those surveyed. One suggests: “A prototype platform for sharing and using value
chain data at one or two initial points.”
Continuing to facilitate discussions with key stakeholders to develop the framework and roadmap for this
integrated strategy – and create a set of deliverable actions – is an identified theme. As well as establishing
a standards committee with engagement from whole of industry including the IT sector, this would help to
develop a shared understanding and effort to apply the Digital Value Chain Strategy, and create a vision that
is embraced, shared and promoted by all.
Several participants suggest that looking to similar industries overseas may help to develop the strategy,
such as New Zealand’s agricultural levy groups, who could provide helpful framework for structures and
common data models.
Developing a clear strategy will build a model that helps everyone work together to achieve the
transformational change needed across the value chain.
One respondent states: “Get industry working together with the common goal of answering consumer
concerns and assist producers with uptake through connectivity solutions and e-training on technology
where required.”
Another respondent identifies the importance of spending more time to ensure the long-term strategy is
right, rather than delivering a less robust outcome in the next 12 months.
A key outcome for producers may be to link carcase data with seedstock animals, which could help to
increase interest from, and participation of, producers in this digital process.
4. General comments or suggestions:
A mix of ideas and suggestions were offered in the surveys, with MLA receiving mentions for its ongoing
work in developing a focused strategy. One respondent states: “A great step to moving the industry towards
the future. Finding everyone’s spot on the ladder will be the challenge. The slow to move will be left
behind.”
The ability and desire of producers’ to take up the strategy - and the technology involved - is a concern: “to
drive adoption a cultural change needs to be driven through education and upskilling farmers to take
advantage and feel comfortable.”
Respondents also focused on what other countries and industries have done on similar strategies, and what
worked well. It is suggested that the health industry is one such trade that could be studied in relation to
data protocols and standards.
This theme also carries across to existing platforms and initiatives – what exists already and could be
amended or adjusted to fit the strategy and uptake of information? One respondent states: “Get and keep
producer groups on board – they need to feel that they are driving this.”
Some also feel that many were beginning to get caught up on the issue of data ownership, and potential
legalities. The potential shortage of data analysts is also flagged.
5. Feedback cards:
There were only nine feedback cards filled in by participants, with a variety of responses recorded in the
quadrants. In the ‘like’ section, key messages include – stating that the strategy was fundamental, but the
industry should not forget about the basics, as current systems were far from perfect: “We need to have a
clear value proposition for industry.”
In the ‘disagree’ section, data ownership is the most common issue, with one respondent saying the
discussion on data ownership is “very confusing”. Another said the industry has been slow to react to
corporate use of industry data.
In the ‘new idea’ section producers want to see a strong value proposition: “Don’t be held up by producers’
capability – they will get on board when there is value for them.” Agricultural industries are encouraged to
share data sets of information on consumer behaviour. Focusing on the future and not immediate benefits is
also a key concern.
In the ‘question’ section there are only three responses focusing on affordable access, how to stimulate
greater private sector investment in service provision in northern Australia, and what the next steps for the
process might be.
Conclusions
It is clear that those surveyed are enthusiastic about the possibilities the development of a Digital Value
Chain Strategy could have for all sectors of the red meat industry. A wide range of responses across the
three key focus areas were received, and some excellent themes identified. Providing greater information
and feedback to all sectors of the supply chain is a key trend, mentioned by about 60% of respondents in the
first key area. However, connectivity remains a critical factor for many, with about 23% of respondents
mentioning it as an issue in the second and third key areas. In the second key area priorities centred on data;
its collection and implementation, who owned it and how it would be shared and protected, with the issue
mentioned by 37% of respondents.
It is suggested that further industry consultation should continue in the key focus areas and themes
identified throughout the development of the Digital Value Chain Strategy.